Mahamedha Urban Coop.Bank Ltd, Ghaziabad V. DCIT, Circle-1, Ghaziabad

ITA 4794/DEL/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7705 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 6 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2013-2014
• Appeal Filed On: 27-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SURTI DANG
• Keywords: Principle of natural justice; TDS
• Section: 143(3); 244A; 37

Judgement Text

. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: E NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEM BER & SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER ITA NO.-4794/DEL/2017 ASSESSMENT YEAR: 2013-14 MAHAMEDHA URBAN COOP. BANK LTD. 36, NAI BASTI, GHAZIABAD, GHAZIABAD, UTTAR PRADESH, VS . DCIT, CIRCLE-1, GHAZIABAD UTTAR PRADESH APPELLANT RESPONDENT ASSESSEE BY : MS. SURTI DANG, C.A. REVENUE BY : MS. RAKHI VIMAL, SR. DR ORDER PER ANADEE NATH MISSHRA, J.M.: (A) THIS APPEAL FILED BY THE ASSESSEE IS AGAINST IMPUGNED APPELLATE ORDER DATED 27.04.2017 PASSED BY THE LD. CIT (APPEALS), GHAZIABAD FOR ASSESSMENT YEAR 2013-14. FOLLOWING GR OUNDS OF APPEAL HAVE BEEN RAISED AS UNDER : 1. THE LD' CIT (A), GHAZIABAD HAS ERRED BY NOT GIVING THE PROPER OPPORTUNITY TO PLEAD THE CASE BEFORE IT AND BY PASSI NG THE APPEAL ORDER AS NON EST. THE ORDER IS NOT TENABLE AS IT IS NOT BASED ON NATURAL GROUND REALITIES AND JUSTICE. 2. THE LD' CIT (A), GHAZIABAD HAS ERRED BY DISMISSING THE APPEAL ONLY ON THE GROUND THAT THE APPEAL WAS FILLE D MANUALLY I.E. OTHER THAT ELECTRONICALLY WHICH IS AGAINST THE PRINCIPLE OF DUE NATURAL JUSTICE. 3. THAT THE LD' CIT (A), GHAZIABAD AND THE LD' DY. COMMISSIONER OF INCOME TAX, CIRCLE - 1, GHAZIABAD H AVE ERRED IN LAW AND ON FACTS IN MAKING THE ADDITION OF RS. 62,0 0,000/- U/S 68 OF INCOME TAX ACT, 1961 IN SHARE CAPITAL ONLY BY MAKING A 2 ITA NO. 4794/DEL/2017 (MAHAMEDHA URBAN COOP. BANK LTD.) REFERENCE OF RBI INSPECTION REPORT, DESPITE AND IGNO RING THE FACTS THAT THE ASSESSEE HAD SUBMITTED ALL THE EVIDENCE TO PROVE THEIR CREDIT WORTHINESS. AFTER PROVIDING ALL THE RELATED DOCUMENTS THE LD' ASSESSING OFFICER NEITHER RAISED ANY QUERY FOR THE SAME NOR OBJECTED ON ANY SUBMITTED DOCUMENTS. IT IS ALSO WORT HWHILE TO MENTION HERE THAT THE RBI INSPECTOR HAD NO ROLE TO J USTIFY THE CREDIT WORTHINESS OF THE SHAREHOLDER. THEY HAVE ONL Y TO GIVE THE REPORT ON FINANCIAL DISCIPLINE OF THE BANK ACCORDIN G TO RUIES AND REGULATIONS OF THE RBI. 4. THAT THE LEARNED DY. COMMISSIONER OF INCOME TAX, CI RCLE -1, GHAZIABAD HAS ERRED IN LAW AND ON FACTS IN MAKING TH E ADDITION OF RS. 1,22,65,050/- FOR DISALLOWING THE EXPENDITUR E U/S 37 BY MAKING THE REFERENCE OF RBI INSPECTION REPORT, DESPI TE AND IGNORING THE FACTS THAT THE ASSESSEE MAINTAINED ITS B OOKS OF ACCOUNT PROPERLY AND GET AUDITED EVEN THE LD' ASSESS ING OFFICER DIDN'T REJECTED THE BOOKS OF ACCOUNT. IT IS ALSO WORTHWHILE TO MENTION HERE THAT THE LD' ASSESSING OFFICER MISUNDERSTAND THE REMARKS OF RBI INSPECTOR F OR NON DECLARING THE LOANS OF RS. 1366.51 LACS AS NPA AND NOT MAKING THE PROVISIONS ON THE SAME. THE LD' ASSESSING OFFICER ALSO IGNORED THE FACT THA T IF THE ASSESSEE DECLARED THE LOANS OF RS. 1366.51 LACS AS N PA THAN A TOTAL INTEREST OF RS. 69.17 LACS WAS ALSO TO BE REVE RSED IN ADDITION TO MAKING THE PROVISIONS AND DUE TO WHICH THE DECLAR ED PROFIT WOULD BE REDUCED BY RS. 69.17 LACS. THE LD' ASSESSING OFFICER HAS ALSO ERRED BY TAKING TH E ABOVE BASE FOR DISALLOWING THE EXPENDITURE WITHOUT POINTI NG OUT ANY DEFICIENCIES IN THE BOOKS OF ACCOUNT. 5. THAT THE LEARNED DY. COMMISSIONER OF INCOME T AX, CIRCLE -1, GHAZIABAD HAS ERRED IN LAW AND ON FACTS IN MAKING T HE ADDITION OF RS. 1,42,56,000/- FOR DISALLOWING THE E XPENDITURE BY MAKING THE REFERENCE OF RBI INSPECTION REPORT, DESP ITE AND IGNORING THE FACTS THAT THE ASSESSEE MAINTAINED ITS BO OKS OF ACCOUNT PROPERLY AND GET AUDITED EVEN THE LD' ASSESS ING OFFICER DIDN'T REJECTED THE BOOKS OF ACCOUNT AND WITHOUT POI NTING OUT ANY DEFICIENCIES IN THE BOOKS OF ACCOUNT. THE LD' ASSESSING OFFICER ALSO IGNORED THE FACTS THA T THE ASSESSEE HAS PROVIDED ALL THE BOOKS OF ACCOUNT AND COMPLETE VOUCHERS WITH SUPPORTS AND BILLS AND EXPLAINED THE GENUINESS OF THE RELATED EXPENDITURE. 6. THAT THE LEARNED DY. COMMISSIONER OF INCOME TAX, CIRCLE -1, GHAZIABAD HAS ERRED IN CALCULATING THE INTEREST AND PENALTY U/S 234 B, 244A & 234D BY IGNORING THE AMOUNT OF TDS/ADVANCE TAX. 7. ANY ADDITIONAL GROUND, IF ANY, MAY BE SUBMITTED WITH YOUR KIND PERMISSION. IT IS, THEREFORE, PRAYED THAT THE ABOVE ADDITIONS MAY KINDLY BE DELETED AND THE APPEAL OF THE APPELLANT ASSESSEE MAY BE ALLOWED ON MERITS OF THE CASE. 3 ITA NO. 4794/DEL/2017 (MAHAMEDHA URBAN COOP. BANK LTD.) [B] ASSESSEES APPEAL AGAINST ASSESSMENT ORDER DA TED 16.03.2016 PASSED BY ASSESSING OFFICER U/S. 143(3) OF IT ACT WAS DISMISSED BY LEARNED COMMISSIONER OF INCOME TAX (AP PEALS) IN LIMINE BY TREATING ASSESSEES APPEAL AS NON EST ; O N THE GROUND THAT THE APPEAL WAS NOT FILED ELECTRONICALLY. AT TH E TIME OF HEARING BEFORE US, THE LD. AUTHORISED REPRESENTATIVE SUBMIT TED THAT ASSESSEES APPEAL HAS ALSO BEEN FILED ELECTRONICALL Y, SEPARATELY. A COPY OF E-FILED COPY OF FORM 35 WAS SUBMITTED FROM ASSESSEES SIDE DURING APPELLATE PROCEEDINGS IN ITAT. IN VIEW OF THIS, SHE SUBMITTED THAT IMPUGNED APPELLATE ORDER DATED 27/04 /2017 OF LD. CIT(A) MAY BE ANNULLED BEING INFRUCTUOUS AND TH E LD. CIT(A) MAY BE DIRECTED TO DISPOSE OF ASSESSEES APPEAL FIL ED ELECTRONICALLY, ON MERITS. THE LD. DEPARTMENTAL REP RESENTATIVE AGREED TO THIS, AND EXPRESSED NO OBJECTION. AS BOTH SIDES ARE IN AGREEMENT TO THIS, WE ANNUL THE IMPUGNED APPELLATE ORDER DATED 27/04/2017 OF LD. CIT(A) BEING INFRUCTUOUS AND DIRE CT LD. CIT(A) TO PASS A FRESH ORDER, AND DECIDE THE ASSESSEES AP PEAL, FILED ELECTRONICALLY, ON MERITS. FOR STATISTICAL PURPOSES , APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28/01/2020. SD/- SD/- (AMIT SHUKLA) (ANADEE N ATH MISSHRA) JUDICIAL MEMBER ACCOUNTANT M EMBER DATED: 28/01/20 *BR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 4 ITA NO. 4794/DEL/2017 (MAHAMEDHA URBAN COOP. BANK LTD.) 5. DR: ITAT TRUE COPY ASSISTANT REGISTRAR ITAT NEW DELHI DATE OF DICTATION 28/01/2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 28/01/2020 DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE OTHER MEMBER DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P S/PS DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. PS/PS DATE ON WHICH THE FINAL ORDER IS UPLOADED ON THE WE BSITE OF ITAT DATE ON WHICH THE FILE GOES TO THE BENCH CLERK DATE ON WHICH THE FILE GOES TO THE HEAD CLERK THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER DATE OF DISPATCH OF THE ORDER